Despite high median prices, housing market conditions in Irvine still favored sellers in late 2018. However, observations by the National Association of Realtors suggest selling is about to turn more competitive. Prospective buyers are still willing to participate in bidding wars, but they’re getting pickier about their potential purchases. One way to get prospective buyers more excited about the bidding is through renovation projects, but there are a few considerations homeowners should make before putting up a home for sale in Irvine, CA.
1. Read the Direction of the Market
Renovating for the sake of making a sale more attractive is a decision that should be made with the state of the market in mind. If national economic indicators point to an overall slowdown of home sales in the near future, home improvements won’t be as helpful because prospective buyers are more likely to ignore them as they seek bargain deals.
2. Set a Budget
Homeowners who take out home equity lines of credit for renovation purposes are essentially taking a financial chance that both market conditions and the listing process will be in their favor all the way to the closing table. It’s better to set a reasonable budget that doesn’t tap too deeply into available equity.
3. Listen to Professional Advice
Everyone agrees that bathroom and kitchen renovations are the most likely renovations to provide a nice return on investment, but there may also be trending or seasonal factors that Irvine real estate agents know about. For example, quartz countertops in the kitchen are all the rage in 2018, but just a few years ago granite was king. As for major outdoor renovations such as adding a swimming pool, the key is to think about what the home appraiser will think of them. If only one other property in the vicinity has a pool, this renovation won’t sway the appraisal report too much.
4. Evaluate Estimates
Home improvement contractors tend to be attuned to housing market conditions. If they become aware of a project intended to boost the asking price of a listing, they may charge a higher fee and complete the project very quickly. Contractors who charge less are bound to take their time because they’re busier working on projects waiting to hit the market soon. Estimates are often easier to get than starting dates, particularly at times when other homeowners are also improving their properties for selling purposes.
5. Develop an Exit Strategy
Should the market suddenly turn against sellers, homeowners who planned for major renovations should think about their next steps, which may involve cutting their losses, waiting out the storm, suspending the project, or reducing the scope of their project.
6. Keep Renovations Simple
Similar to landlords who only clean the carpet and throw a fresh coat of paint on their apartments in times of high demand, sellers may want to keep their renovation projects modest and instead focus on staging, a real estate technique that is more about interior decoration than actual renovation.
From Turtle Rock to El Camino Real, Irvine homes for sale are in high demand. However, before selling your home, make sure to connect with a trusted local agent who can help you get the best price. Call Irvine Residential Living today at 714-454-6304.